oboloo Glossary

Credits And Debits Chart

oboloo Glossary

Credits And Debits Chart

A credits and debits chart is an important tool used by businesses to keep track of their financial activity. The chart makes it easy to visualize a company’s financial standing, as well as the total amount owed in both outgoing and incoming funds. To fill out the chart, one simply lists all transactions that involve either incoming or outgoing money. Incoming funds are usually called “credits”, while outgoing funds are labeled “debits”. After each transaction, the respective column (credits and debits) will be amended with the value of the transaction. An overview of the business’ current financial situation can then be drawn from the difference between the two columns. By reviewing a credits and debits chart regularly, businesses can easily track their financial success and make informed decisions about how to monitor and manage their finances better.